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PIYUSH AGRAWAL
Malik Traders – Appellant
Versus
State of U. P. – Respondent
| Table of Content |
|---|
| 1. the petitioner contests an order demanding payment due to improper availment of input tax credit. (Para 3 , 4) |
| 2. the petitioner argues against denial of tax credit based on seller's tax compliance. (Para 5 , 6) |
| 3. respondent highlights the onus on the dealer to prove legitimacy of transactions for itc. (Para 8 , 9) |
| 4. court outlines legal framework on itc claims needing fulfillment of specified conditions. (Para 11 , 12 , 13 , 14 , 16) |
| 5. judgment emphasizes the responsibility of the dealer in substantiating itc claims. (Para 18 , 19 , 20 , 21) |
JUDGMENT
Piyush Agrawal, J.
Heard Mr. Pradeep Kumar Srivastava for the petitioner and Mr. Rishi Kumar, learned Additional Chief Standing Counsel for the respondents.
2. The instant Writ Tax is being entertained by this Court in view of the fact that G.S.T. Tribunal is not functional in the State of Uttar Pradesh pursuant to the Gazette notification of the Central Government bearing number CG-DL-E-14092023-248743 dated 14.09.2023.
3. By means of this writ petition, the petitioner is assailing the order dated 4.10.2019 passed by the Commercial Tax Officer, Sector 2 Meerut by which the proceedings of Section 74 of UP GST Act was
Dealers claiming input tax credit must establish genuine transactions and physical movement of goods with adequate proof; failure to do so may result in disallowance and recovery proceedings under th....
The burden of proof lies with the dealer to establish the genuineness of transactions and actual movement of goods for Input Tax Credit claims under GST.
Input tax credit claims require proof of actual tax payment by the supplier; failure to demonstrate this results in denial of credit.
The burden of proof lies on the recipient to establish the legitimacy of Input Tax Credit claims, necessitating evidence of actual goods received, which failed in this case.
A registered person is not entitled to input tax credit if the claimed supplies are from non-existent firms, regardless of the validity of the supplier's GST registration at the time of transaction.
The court held that input tax credit cannot be denied based on the seller's retrospective registration cancellation when the transaction occurred while the seller was registered.
Purchasing dealers claiming ITC must prove genuine transactions and actual physical movement beyond invoices or payment details under Section 70 of KVAT Act, 2003.
Tax authorities must provide substantial evidence of fraud or suppression of facts before imposing penalties under Sections 74 and 50, especially when input tax credit has already been reversed volun....
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